{"id":328672,"date":"2024-08-01T00:29:57","date_gmt":"2024-07-31T16:29:57","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328672"},"modified":"2024-08-01T00:29:59","modified_gmt":"2024-07-31T16:29:59","slug":"stock-in-focus-areit-inc-areit-1-aug-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-areit-inc-areit-1-aug-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: AREIT Inc. (AREIT) – 1 Aug 2024 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>AREIT<\/td><\/tr>
Company Name<\/strong><\/td>AREIT Inc.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>1 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 42.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We reiterate our BUY rating on AREIT, our top pick among all listed REITs. Our Php42.10 Target Price, based on multistage dividend discount model, still offers a potential share price upside of 13%, following a superb year-to-date surge of 11.2%.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

High-quality portfolio grows further<\/h3>\n\n\n\n

Our optimism on AREIT stems from its solid track record and chunky quality portfolio, which is poised to expand by 32% to Php117 billion in AUM (Assets under Management) upon the completion of the acquisitions of Php28.6 billion worth of six prime buildings (Ayala Triangle Two Office Building, Greenbelt Mall 3 & 5, Holiday Inn and Suites Makati, and Seda Ayala Center Cebu) and one industrial land through a property-for-share swap currently just pending the approval of the SEC.<\/p>\n\n\n\n

Consistently rising dividends<\/h3>\n\n\n\n

AREIT has shown an uninterrupted growth in annual dividends since its Initial Public Offering (IPO). It recently declared a cash dividend of Php0.56\/share for 2Q 2024, the same as the dividend declared in 1Q 2024, which we expect to improve moving forward. <\/p>\n\n\n\n

The consistently strong performance of existing properties and the constant acquisition of dividend-accretive assets will make new record-high dividends possible, in our view. As it is, our 2024 dividend yield forecast is compelling enough at 6.1%.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>